Case Law Details
Cummins Technologies India Private Limited Vs Union of India (Bombay High Court)
Bombay High Court held that filing of refund application u/s. 27 of the Customs Act after more than two years of date on which excess duty payment was done is clearly beyond the period of one year as contemplated by the Customs Act and hence is barred by limitation.
Facts- The petitioner inadvertently paid an excess customs duty of Rs. 38,90,832/- on 11 July 2017. Accordingly, on 30 July 2019, the Petitioner filed an application claiming refund of customs duty paid in double/ excess as per the prescribed format u/s. 27 of the Customs Act, 1962, also declaring that the excess / double duty claimed as refund has not been passed on to any other person by the importer / buyer. On 8 November 2019, Respondent no.3 rejected the claim of refund as time barred and not sustainable under Section 27 of the Customs Act, as the application was filed beyond a period of one year from the date of payment of duty.
Aggrieved by the aforesaid order of rejection of the claim for refund of excess duty paid, Petitioner has filed this Petition on 14 September 2020 seeking to quash and set aside the said order with further direction for refund of the amount of Rs.38,90,832/- to the Petitioner.
Conclusion- Section 27 of the Customs Act, as above, clearly requires that any person claiming refund of any duty is to make an application in the form or manner as may be prescribed before the expiry of one year from the date of payment of such duty or interest. In the present case, the petitioner has filed refund application on 30.07.2019, after more than two years of payment of duty and therefore, even if the date of 11.7.2017 is considered as the payment of duty, the one year would end on 10 July 2018 which is clearly beyond the period of one year as contemplated by the Customs Act and is barred by limitation.
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